The 'Double Entry System' was first codified by: MCQ with Answer and Explanation

The 'Double Entry System' was first codified by:
A. Luca Pacioli
B. Henry Ford
C. Kautilya
D. Adam Smith
Answer: Option A
Solution (By JKSSB Mock Tests)
Luca Pacioli, an Italian mathematician, described the double-entry system in 1494.

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Practice More Accountancy and Book Keeping Questions

Question #1
The 'Financial Statements' of a company must comply with:
A. Companies Act and Accounting Standards
B. Partnership Act
C. Income Tax Act
D. GST Act

Correct Answer: Option A


Explanation:
Companies Act 2013 and Accounting Standards govern financial statements.

Question #2
The 'Fund-based Accounting' is used by:
A. Sole traders
B. Non-profit organizations and government entities
C. Companies
D. Partnership firms

Correct Answer: Option B


Explanation:
Fund-based accounting tracks resources for specific purposes, common in NPOs and government.

Question #3
S1: Revaluation Account is a nominal account. S2: Revaluation Account is prepared to ascertain the profit or loss on revaluation of assets and liabilities. Which statement(s) is/are correct?
A. S2 only
B. Both S1 and S2
C. S1 only
D. Neither S1 nor S2

Correct Answer: Option B


Explanation:
Revaluation Account records expenses (decreases in asset values) and incomes (increases in liability values), making it a nominal account. Its purpose is to calculate the net effect of revaluation on partners' capital. Both are correct.